CBD re­ports a 28% in­crease in profit thanks to op­er­at­ing in­come 11.1%

The National - News - - BUSINESS - FA­REED RAH­MAN

Com­mer­cial Bank of Dubai re­ported a 28.27 per cent in­crease in third-quar­ter net profit as op­er­at­ing in­come climbed and im­pair­ment al­lowances re­duced.

Net profit for the three-month pe­riod end­ing Septem­ber 30 rose to Dh362 mil­lion, the lender said in a state­ment to the Dubai Fi­nan­cial Mar­ket, where its shares trade. The bank re­ported quar­terly op­er­at­ing in­come of Dh732m, a 6.1 per cent year-on-year in­crease.

Strong earn­ings are a re­sult of “fos­ter­ing a cul­ture of growth and dis­ci­plined ex­e­cu­tion of our well-planned strat­egy,” the bank’s chief ex­ec­u­tive, Bernd van Lin­der, said in the bourse fil­ing yesterday. “We an­tic­i­pate a con­sis­tent re­sult in the fourth quar­ter and re­main on track to de­liver a record re­sult for the full year.”

CBD will con­tinue to in­vest in new tech­nol­ogy and is ac­tively pur­su­ing its dig­i­tal trans­for­ma­tion pro­gramme to ex­pand and im­prove its ser­vices, he added.

The net in­ter­est and in­come from Is­lamic fi­nanc­ing also rose to Dh504m dur­ing the three-month pe­riod this year, from Dh489m re­ported a year ear­lier, it said.

Im­pair­ment al­lowances for loans and ad­vances and the bank’s Is­lamic fi­nanc­ing port­fo­lio In­crease in op­er­at­ing in­come for the bank year-on-year dropped to Dh164.1m at the end of Septem­ber from Dh199.4m dur­ing the same pe­riod in 2018, the bank re­ported.

For the first nine months of 2019, the bank earned a net profit of Dh1.063 bil­lion, a 26.1 per cent in­crease over the same pe­riod last year.

Op­er­at­ing in­come was up 11.1 per cent year-on-year to Dh2.24bn, driven by higher net in­ter­est in­come and other op­er­at­ing in­come.

Net im­pair­ment al­lowances also de­clined dur­ing the first nine months of the year, drop­ping 2.6 per cent to Dh526m.

To­tal as­sets climbed to Dh82.5bn as at Septem­ber 30 2019, an in­crease of 13.9 per cent com­pared to Dh72.4bn dur­ing the same pe­riod in 2018.

The bank said its cus­tomers’ de­posits in­creased 17.2 per cent to Dh59.1bn dur­ing the nine-month pe­riod.

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